Are Retailers Cutting IT Spending?

Ouch. The VAR Guy spotted some troubling news about tech spending within the retail vertical. ScanSource, which distributes point of sale and barcode technology, released disappointing quarterly estimates this morning. For VARs serving the retail vertical, this could be a major warning sign.

Although The VAR Guy tends to be a “glass half full” type of dude, he does worry when distributors issue sales warnings. Companies like ScanSource are economic bell weathers for the IT channel.

ScanSource expects sales for its Q3 end in March to be about $509 million to $515 million, but Wall Street was expecting sales to top $560 million, according to Barron’s. Translation: We’re looking at a 10 percent shortfall or so at ScanSource.

Not exactly a comforting thought as we all hope the economy is improving, rather than contracting. Also of note: If ScanSource says sales of bar code scanners were slow this past quarter, does that mean bar code leader Symbol Technologies (now owned by Motorola) also has experienced a sales slowdown?

The VAR Guy will keep an extra close eye on the retail vertical as well as other IT distributors in the days ahead.

Update, April 7, 10:42pm: Sounds like ScanSource is pointing the finger of blame at Avaya partner program changes, rather than overall weakness in IT retail spending.

Websites are now required by law to gain your consent before applying cookies. We use cookies to improve your
browsing experience. Parts of the website may not work as expected without them. By closing or ignoring this
message, you are consenting to our use of cookies.